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China And Asia Continue To Thrive For Apple

Aug. 02, 2018 9:30 AM ETApple Inc. (AAPL)29 Comments
Nick Cox profile picture
Nick Cox


  • Q3 results illustrated continuing strength in both China and Rest of Asia Pacific.
  • India still a work in progress.
  • Growing population in Asia will provide secular growth for the company.
  • Strong brand and product synergies will drive future growth in the world's fastest-growing region.

The Q3 results from Apple (NASDAQ:AAPL) once again showed the importance of Asia to the company. 31% of Q3 revenues came from the region. China was especially strong. Asia's growing population provides a strong basis for growth not just based on new products or increased market share. Tim Cook continues to understand this growth driver even though it is underestimated by many analysts. The strength of the brand resonates with the continent's growing population.


Growth for Apple is being seen across the complete product range. Much of this is based around the value of its brand.

My article in February gave details of why Asia's 4.3 billion consumers matter so much to the company. This is not surprising when you see that:

Asia = 34% of world GDP.

North America = 28% of world GDP.

Europe = 21% of world GDP.

The World Bank detail is illustrated below:

Apple's Q3 results showed continuing year-on-year healthy growth in Asia although this quarter the Americas had the strongest growth:


Of course, GDP per capita is lower in Asia than in North America or Europe. However, the growth drivers are there. Most importantly, the region has generally young populations and strong economic growth rates.

Many of the newer product areas from Apple are those that will appeal to Asian consumers. In particular, there is the Apple Watch. A new report from Canalys estimates that Apple sold 3.5 million in the last quarter out of a world total 10 million. This represented an increase of 35% in what is a strongly growing market in general. Apple has been able to leverage the business on the back of its iPhone customer base although competitors such as Fitbit (FIT) and Garmin (GRMN) also did well.

The report stated that Asia is leading this surge

This article was written by

Nick Cox profile picture
Nick Cox is a long-time entrepreneur and investor,currently living in Singapore.He has lived and worked in the Asia-Pacifci region for many years.He is a graduate in modern history and economics from University College,London University. His investment strategy is centred around finding long-term growth companies in the region based on inspiring Management and businesses at the cutting edge of new growth areas. Asia is the leading driver of worldwide economic growth today and for the medium term.

Analyst’s Disclosure: I am/we are long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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